Intelligent Systems Announces Second Quarter and Year-to-Date 2016 Results

NORCROSS, Ga., Aug. 12, 2016 (GLOBE NEWSWIRE) -- Intelligent Systems Corporation (NYSE MKT:INS) announced today its financial results for the three and six month periods ended June 30, 2016

Revenue was $1,550,000 and $3,196,000 in the three and six month periods of 2016, respectively, representing growth of 28 percent and 40 percent, respectively, as compared to the same periods in 2015.  The growth is attributable to an increase in the number of accounts covered by certain software licenses, an increase in our processing services customer base and an upswing in our professional services. 

For the three month period ended June 30, 2016, the company recorded net loss attributable to Intelligent Systems of $217,000 ($0.02 per basic and diluted share) compared to net loss attributable to Intelligent Systems of $793,000 ($0.09 per basic and diluted share) in the second quarter of 2015. The strong revenue growth for the quarter coupled with a substantial decrease in operating expenses, due in part to higher one-time G&A expenditures in the prior year, resulted in a significantly lower loss from continuing operations for the second quarter of 2016 as compared to the same period last year.

For the year-to-date period ended June 30, 2016, the company recorded net loss  attributable to Intelligent Systems Corporation of $1,155,000  ($0.13 per basic and diluted share), compared to net income attributable to Intelligent Systems of $17,504,000 ($1.97 per basic share and $1.95 per diluted share) in the six month period in 2015. The dramatic change between periods reflects the gain of $18,726,000 on the sale of the company’s former ChemFree subsidiary in the year-to-date period in 2015.  As previously announced, the company sold its ChemFree subsidiary on March 31, 2015 and consequently has classified the ChemFree business as discontinued operations for all periods presented.

“We continue to see gains in all three components of our FinTech focused businesses – licensing, processing, and professional services. The gains are coming both from our innovative prepaid solutions and our rich credit software offerings,” commented J. Leland Strange, CEO of Intelligent Systems. “We are fairly comfortable that the second half of 2016 will be significantly stronger than the first half as we recognize revenue from work done throughout the year. While the expenses of being a public company will impact operating results and may result in an overall loss, I believe the CoreCard operations have turned the corner and will be profitable for the year.”

Investor Conference Call Today

The company is holding an investor conference call today, August 12, 2016, at 11 AM Eastern time.  Interested investors are invited to attend the conference call by dialing (855) 766-6518 and entering conference ID code 56384370.  A transcript of the call will be posted on the company’s website at as soon as available after the call.

The company will file its Form 10-Q for the period ended June 30, 2016 with the Securities and Exchange Commission today, August 12, 2016. For additional information about reported results, investors will be able to access the Form 10-Q on the company’s website at or on the SEC site,

About Intelligent Systems Corporation

For over thirty-five years, Intelligent Systems Corporation (NYSE MKT:INS) has identified, created, operated and grown technology companies. The company’s principal continuing operations include CoreCard Software, Inc. ( and its affiliate companies. CoreCard designs, develops, and markets a comprehensive suite of software solutions to corporations, financial institutions, retailers and processors to manage their credit and debit cards, prepaid cards, private label cards, fleet cards, loyalty programs, and accounts receivable and small loan transactions. CoreCard is a unique partner for FinTech innovators by providing them a comprehensive platform for their payment and processing solutions. CoreCard also offers prepaid and credit card processing services using its proprietary software solutions.   Further information is available on the company’s website at or by calling the company at 770/381-2900.

In addition to historical information, this news release may contain forward-looking statements relating to Intelligent Systems Corporation and its subsidiary and affiliated companies. These statements include all statements that are not statements of historical fact regarding the intent, belief or expectations of Intelligent Systems Corporation and its management with respect to, among other things, results of operations, product plans, and financial condition. The words "may," "will," "anticipate," "believe," "intend," "expect," "estimate," "plan," "strategy" and similar expressions are intended to identify forward-looking statements.  Prospective investors are cautioned that any such forward-looking statements are not guarantees of future performance and involve risks and uncertainties and that actual results may differ materially from those contemplated by such forward-looking statements. The company does not undertake to update or revise any forward-looking statements whether as a result of new developments or otherwise, except as required by law. Among the factors that could cause actual results to differ materially from those indicated by such forward-looking statements are instability in the financial markets, delays in product development, undetected software errors, competitive pressures, changes in customers’ requirements or financial condition, market acceptance of products and services, and declines in general economic and financial market conditions, particularly those that cause businesses to delay or cancel purchase decisions.

(unaudited, in thousands, except share and per share amounts) 
 Three Months Ended June 30,Six Months Ended June 30, 
  2016  2015  2016  2015  
Products$149 $139 $378 $275  
Services 1,401  1,069  2,818  2,002  
Total net revenue 1,550  1,208  3,196  2,277  
Cost of revenue     
Products 58  52  122  112  
Services 719  626  1,367  1,170  
Total cost of revenue 777  678  1,489  1,282  
Marketing 99  52  195  123  
General and administrative 383  725  939  1,093  
Research and development 611  718  1,256  1,412  
Loss from operations (320) (965) (683) (1,633) 
Other income (loss) 21  27   (642)1 29  
Loss from continuing operations before income taxes (299) (938) (1,325) (1,604) 
Income taxes (2)  --  (3) 3  
Loss from continuing operations (297) (938) (1,322) (1,607) 
Gain (loss) on sale of discontinued operations, net of taxes  --  (20)  --  18,7262 
Loss from discontinued operations, net of taxes  --   --   --  (3) 
Net income (loss) (297) (958) (1,322) 17,116  
Net loss attributable to noncontrolling interest 80  165  167  388  
Net income (loss) attributable to Intelligent Systems Corporation$(217)$(793)$(1,155)$17,504  
Earnings (loss) per share attributable to Intelligent Systems Corporation:         
Basic earnings (loss) per share$(0.02)$(0.09)$(0.13)$1.97  
Diluted earnings (loss) per share$(0.02)$(0.09)$(0.13)$1.95  
Basic weighted average common shares outstanding 8,731,299  8,806,875  8,731,299  8,882,452  
Diluted weighted average common shares outstanding  8,731,299   8,806,875   8,731,299  8,977,839  
  1. Includes write-down of $750,000 on carrying value of investment in early stage technology company.
  2. Reflects sale of ChemFree subsidiary on March 31, 2015.

(in thousands) 
As of  June 30, 2016  December 31, 2015 
ASSETS  (unaudited)  (audited) 
Current assets:       
Cash $16,843 $18,059 
Marketable securities  418  396 
Accounts receivable, net  532  962 
Other current assets  1,201  2,846 
Restricted cash  2,200  2,200 
Total current assets  21,194  24,463 
Investments  245  1,015 
Property and equipment, at cost less accumulated depreciation  650  636 
Other long-term assets  118  59 
Total assets $22,207 $26,173 
Current liabilities:       
Accounts payable $122 $78 
Deferred revenue, current portion  2,157  1,830 
Accrued payroll  648  495 
Accrued expenses  28  25 
Other current liabilities  279  243 
Liabilities from discontinued operations  --   120 
Total current liabilities  3,234  2,791 
Deferred revenue, net of current portion  131  195 
Other long-term liabilities  18  18 
Total Intelligent Systems Corporation stockholders’ equity  21,870  26,048 
Noncontrolling interest  (3,046) (2,879)
Total stockholders’ equity  18,824  23,169 
Total liabilities and stockholders’ equity $22,207 $26,173 

For further information, call
Karen Reynolds, 770-564-5503
or email to

Primary Logo

Source: Intelligent Systems Corporation